What is JPMorgan’s JPMD deposit token, and could it replace stablecoins?

• JPMorgan is set to introduce JPMD, a permissioned deposit token for institutional blockchain-based settlements.
• JPMD faces tough competition from dominant stablecoins amid booming $4.1 trillion transaction volumes.

After years of vocal skepticism toward digital assets and then shifting its stance on crypto, JPMorgan Chase now appears to be doubling down in its bet on blockchain.

In fact, CEO Jamie Dimon, once a staunch critic of Bitcoin, has recently indicated that the banking giant will soon allow its clients to invest in BTC.

JPMorgan to introduce its own stablecoin 

Adding to this evolving strategy, JPMorgan recently filed a trademark for a stablecoin dubbed ‘JPMD,’ signaling its deeper foray into the digital currency space.

The bank also revealed plans to launch the deposit token on Coinbase’s Base blockchain, a Layer-2 network built on Ethereum. This token will act as digital representations of commercial bank deposits.

Providing his insights on this move, Simon Taylor, Head of Strategy & Content at Sardine, said, 

“This is clearly aimed at corporate treasurers who are stablecoin curious.”

He further added, 

“Over time JPMD could compete with USDC or USDT for dollar usage as on chain finance grows in consumer and commercial payments use cases.”

How will it be different from traditional stablecoins?

JPMorgan’s proposed digital asset, JPMD, is a permissioned token created solely for institutional clients, unlike public stablecoins.

It offers 24/7 settlement and introduces the potential for interest payments, a feature rarely found in traditional stablecoins.

JPMorgan chose deposit tokens to help institutions transfer funds faster and more efficiently. These tokens operate within existing banking regulations and systems. 

Unlike most stablecoins, deposit tokens are tied directly to bank infrastructure. This ensures greater speed, compliance, and operational familiarity.

Therefore, this move reflects JPMorgan’s aim to modernize finance while reinforcing the strengths of conventional banking systems.

Community not convinced

However, the community did not seem to have liked that approach, as noted by an X user who said, 

Source: Chris Storaker/X

Unlike USDT and USDC, JPMD is issued by a regulated bank, not a private company. It operates within the traditional financial system and is backed as a deposit token, not just by cash equivalents. 

Experts say JPMorgan’s regulatory strength gives JPMD an edge over typical stablecoins. They view it as a bridge between legacy banking and blockchain, not just another digital product.

Will JPMD replace USDT and USDC?

JPMorgan’s push with JPMD is bold, but challenging the dominance of stablecoin leaders like USDT and USDC won’t be easy.

According to Visa’s on-chain data, Tether’s supply stands at 165.58 billion and USDC at 61.17 billion as of June 2025. In just the past 30 days, the sector saw over $4.1 trillion in transaction volume.

Momentum continues to build, especially following the Senate’s bipartisan approval of the GENIUS Act—the first major crypto legislation in the U.S.

Treasury Secretary Scott Bessent has even projected the stablecoin market could reach $3.7 trillion by 2030.

Still, if JPMorgan can scale JPMD beyond its pilot, it could usher in a new era where traditional banking and blockchain innovation operate together under regulatory clarity.